California Resources (CRC) 10-Q 5 May 16 2016 Q1 Quarterly report Financial data

Document and Entity Information

Document and Entity Information	3 Months Ended
	Mar. 31, 2016shares
Document and Entity Information
Entity Registrant Name	California Resources Corp
Entity Central Index Key	1,609,253
Document Type	10-Q
Document Period End Date	Mar. 31, 2016
Amendment Flag	false
Current Fiscal Year End Date	--12-31
Entity Well-known Seasoned Issuer	Yes
Entity Voluntary Filers	No
Entity Current Reporting Status	Yes
Entity Filer Category	Large Accelerated Filer
Entity Common Stock, Shares Outstanding	389,166,706
Document Fiscal Year Focus	2,016
Document Fiscal Period Focus	Q1

Consolidated Condensed Balance

Consolidated Condensed Balance Sheets - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
CURRENT ASSETS
Cash and cash equivalents	$ 10	$ 12
Trade receivables, net	170	200
Inventories	61	58
Other current assets	190	227
Total current assets	431	497
PROPERTY, PLANT AND EQUIPMENT	21,044	20,996
Accumulated depreciation, depletion and amortization	(14,830)	(14,684)
TOTAL PROPERTY, PLANT AND EQUIPMENT, NET	6,214	6,312
OTHER ASSETS	17	244
TOTAL ASSETS	6,662	7,053
CURRENT LIABILITIES
Current maturities of long-term debt	100	100
Accounts payable	233	257
Accrued liabilities	305	222
Current income taxes		26
Total current liabilities	638	605
LONG-TERM DEBT - PRINCIPAL AMOUNT	5,872	6,043
DEFERRED GAIN AND ISSUANCE COSTS, NET	470	491
DEFERRED INCOME TAXES	47
OTHER LONG-TERM LIABILITIES	$ 587	$ 830
EQUITY
Preferred stock ( 200 million shares authorized at $0.01 par value) no shares outstanding at March 31, 2016 and December 31, 2015
Common stock ( 2.0 billion shares authorized at $0.01 par value) outstanding shares (March 31, 2016 - 389,166,706 and December 31, 2015 - 388,180,479)	$ 4	$ 4
Additional paid-in capital	4,789	4,778
Accumulated deficit	(5,733)	(5,683)
Accumulated other comprehensive loss	(12)	(15)
Total equity	(952)	(916)
TOTAL LIABILITIES AND EQUITY	$ 6,662	$ 7,053

Consolidated Condensed Balance3

Consolidated Condensed Balance Sheets (Parenthetical) - $ / shares	Mar. 31, 2016	Dec. 31, 2015
Consolidated Condensed Balance Sheets
Preferred stock, authorized shares	200,000,000	200,000,000
Preferred stock, par value (in dollars per share)	$ 0.01	$ 0.01
Preferred stock, outstanding shares	0	0
Common stock, authorized shares	2,000,000,000	2,000,000,000
Common stock, par value (in dollars per share)	$ 0.01	$ 0.01
Common Stock, Shares, Outstanding	389,166,706	388,180,479

Consolidated Condensed Statemen

Consolidated Condensed Statements of Operations - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
REVENUES
Oil and natural gas net sales	$ 304	$ 549
Other revenue	18	28
Total revenues	322	577
COSTS AND OTHER
Production costs	184	242
General and administrative expenses	67	76
Depreciation, depletion and amortization	147	253
Taxes other than on income	39	55
Exploration expense	5	17
Interest and debt expense, net	74	79
Other (income) / expenses, net	(66)	24
Total costs and other	450	746
LOSS BEFORE INCOME TAXES	(128)	(169)
Income tax benefit	78	69
NET LOSS	$ (50)	$ (100)
Net loss per share of common stock
Basic (in dollars per share)	$ (0.13)	$ (0.26)
Diluted (in dollars per share)	$ (0.13)	(0.26)
Dividends per common share		$ 0.01

Consolidated Condensed Stateme5

Consolidated Condensed Statements of Comprehensive Income - USD ($) $ in Millions		3 Months Ended
		Mar. 31, 2016	Mar. 31, 2015
Consolidated Condensed Statements of Comprehensive Income
Net loss		$ (50)	$ (100)
Other comprehensive income / (loss) items:
Reclassification to income of realized losses (gains) on pension and postretirement	[1],[2]	3
Other comprehensive income / (loss), net of tax		3
Comprehensive loss		$ (47)	$ (100)
[1]	No associated income taxes.
[2]	No associated income taxes.

Consolidated Condensed Stateme6

Consolidated Condensed Statements of Cash Flows - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
CASH FLOW FROM OPERATING ACTIVITIES
Net loss	$ (50)	$ (100)
Adjustments to reconcile net loss to net cash provided by operating activities:
Depreciation, depletion and amortization	147	253
Deferred income tax expense / (benefit)	(78)	(69)
Other noncash (gains) / losses in income, net	(2)	26
Dry hole expenses		6
Changes in operating assets and liabilities, net	98	(1)
Net cash provided by operating activities	115	115
CASH FLOW FROM INVESTING ACTIVITIES
Capital investments	(21)	(133)
Changes in capital investment accruals	(7)	(173)
Acquisitions and other	(1)	(7)
Net cash used by investing activities	(29)	(313)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from revolving credit facility	361	757
Repayments of revolving credit facility	(405)	(547)
Payments on long-term debt	(25)
Debt repurchase and amendment costs	(20)
Issuance of common stock	1	2
Net cash (used) / provided by financing activities	(88)	212
(Decrease) / increase in cash and cash equivalents	(2)	14
Cash and cash equivalents-beginning of period	12	14
Cash and cash equivalents-end of period	$ 10	$ 28

THE SPIN-OFF AND SUMMARY OF SIG

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	3 Months Ended
	Mar. 31, 2016
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES	NOTE 1 THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES The Separation and Spin-off We are an independent oil and natural gas exploration and production company operating properties exclusively within the State of California. We were incorporated in Delaware as a wholly-owned subsidiary of Occidental Petroleum Corporation (Occidental) on April 23, 2014, and remained a wholly-owned subsidiary of Occidental until the spin-off on November 30, 2014 (the Spin-off). Prior to the Spin-off, all material existing assets, operations and liabilities of Occidental’s California business were consolidated under us. On November 30, 2014, Occidental distributed shares of our common stock on a pro rata basis to Occidental stockholders and we became an independent, publicly traded company. Occidental initially retained approximately 18.5% of our outstanding shares of common stock, which it distributed to Occidental stockholders on March 24, 2016. Except when the context otherwise requires or where otherwise indicated, all references to ‘‘CRC,’’ the ‘‘Company,’’ ‘‘we,’’ ‘‘us’’ and ‘‘our’’ refer to California Resources Corporation and its subsidiaries. Basis of Presentation The assets and liabilities in the consolidated condensed financial statements are presented on a historical cost basis. We have eliminated all of our significant intercompany transactions and accounts. In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of March 31, 2016, and the statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2016 and 2015, as applicable. The loss and cash flows for the periods ended March 31, 2016 and 2015 are not necessarily indicative of the loss or cash flows you should expect for the full year. Certain prior year amounts have been reclassified to conform to the 2016 presentation. We have prepared this report pursuant to the rules and regulations of the United States Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015.

ACCOUNTING AND DISCLOSURE CHANG

ACCOUNTING AND DISCLOSURE CHANGES	3 Months Ended
	Mar. 31, 2016
ACCOUNTING AND DISCLOSURE CHANGES
ACCOUNTING AND DISCLOSURE CHANGES	NOTE 2 ACCOUNTING AND DISCLOSURE CHANGES In March 2016, the Financial Accounting Standards Board (FASB) simplified several aspects of the accounting for employee share-based payment transactions, including the accounting for income taxes, forfeitures, and statutory tax withholding requirements, as well as classification in the statement of cash flows. These rules are effective for fiscal years beginning after December 15, 2016, including interim periods within those fiscal years, with early adoption permitted. We are currently evaluating the impact of these rules on our financial statements. In March 2016, the FASB issued rules intended to improve the operability and understandability of the implementation guidance on principal versus agent considerations and whether an entity reports revenue on a gross or net basis. These rules have the same effective date as the related revenue standard issued in 2014. We are currently evaluating the impact of these rules on our financial statements. In February 2016, the FASB issued rules requiring lessees to recognize assets and liabilities on the balance sheet for the rights and obligations created by all leases with terms of more than 12 months and to include qualitative and quantitative disclosures with respect to the amount, timing, and uncertainty of cash flows arising from leases. These rules will be effective for fiscal years beginning after December 15, 2018, including interim periods within those fiscal years, with earlier application permitted. We are currently evaluating the impact of these rules on our financial statements. In January 2016, the FASB issued rules that modify how entities measure equity investments and present changes in the fair value of financial liabilities. Under the new guidance, entities will have to measure equity investments that do not result in consolidation and are not accounted for under the equity method at fair value and recognize any changes in fair value in net income unless the investments qualify for the new practicality exception. Entities will have to record changes in instrument-specific credit risk for financial liabilities measured under the fair value option in other comprehensive income. These new rules become effective for fiscal years beginning after December 15, 2017 with no early adoption permitted. We are currently evaluating the impact of these rules, but we do not expect them to have a significant impact on our financial statements.

OTHER INFORMATION

OTHER INFORMATION	3 Months Ended
	Mar. 31, 2016
OTHER INFORMATION
OTHER INFORMATION	NOTE 3 OTHER INFORMATION Other current assets at March 31, 2016 and December 31, 2015, include amounts due from joint interest partners, net of allowance for doubtful accounts, of approximately $42 million for both years, net deferred tax assets of $47 million and $59 million, and derivatives from commodities contracts of $79 million and $87 million, respectively. Other long-term liabilities include asset retirement obligations of $344 million and $343 million at March 31, 2016 and December 31, 2015, respectively. Other revenue and other (income) / expenses largely comprised sales and the associated costs, respectively, of the portion of electricity generated by our power plant that is sold to third parties. In 2016, other (income) / expenses also included gains related to the repurchase of certain senior unsecured notes. Financial Instruments Fair Value The carrying amounts of cash and other on-balance sheet financial instruments, other than debt, approximate fair value. Supplemental Cash Flow Information We did not make United States federal and state income tax payments during the three-month periods ended March 31, 2016 and 2015. Interest paid totaled approximately $48 million and $54 million for the three months ended March 31, 2016 and 2015, respectively.

INVENTORIES

INVENTORIES	3 Months Ended
	Mar. 31, 2016
INVENTORIES
INVENTORIES	NOTE 4 INVENTORIES Inventories as of March 31, 2016 and December 31, 2015, consisted of the following: March 31, 2016 December 31, 2015 (in millions) Materials and supplies $ $ Finished goods Total $ $

DEBT

DEBT	3 Months Ended
	Mar. 31, 2016
DEBT
DEBT	NOTE 5 DEBT Debt as of March 31, 2016 and December 31, 2015, consisted of the following: March 31, 2016 December 31, 2015 (in millions) Secured First Lien Bank Debt Revolving Credit Facility $ $ Term Loan Facility Senior Secured Second Lien Notes 8% Notes Due 2022 Senior Unsecured Notes 5% Notes Due 2020 5 1 / 2 % Notes Due 2021 6% Notes Due 2024 Total Debt - Principal Amount Less Current Maturities of Long-Term Debt Long-Term Debt - Principal Amount $ $ At March 31, 2016 deferred gain and issuance costs were $470 million net, consisting of $543 million of deferred gains offset by $73 million of deferred issuance costs. The December 31, 2015 deferred gain and issuance costs were $491 million net, consisting of $560 million of deferred gains offset by $69 million of deferred issuance costs. Credit Facilities We have a credit agreement effective through September 2019 that provides for (i) a $975 million senior term loan facility (the Term Loan Facility) and (ii) a $1.6 billion senior revolving loan facility (the Revolving Credit Facility and, together with the Term Loan Facility, the Credit Facilities). All borrowings under these facilities are subject to certain customary conditions. We amended the Credit Facilities effective as of February 2016, to change certain of our financial and other covenants. We further amended these agreements in April 2016 to facilitate certain types of deleveraging transactions. Borrowings under our Credit Facilities are subject to a borrowing base which was reaffirmed at $2.3 billion as of May 2016. We have granted our lenders a first-lien security interest in a substantial majority of our assets. The Revolving Credit Facility includes a sub-limit of $400 million for the issuance of letters of credit. As of March 31, 2016 and December 31, 2015, we had outstanding borrowings under our Revolving Credit Facility of $695 million and $739 million, respectively, and outstanding borrowings of $975 million and $1 billion under the Term Loan Facility, respectively. We made the first scheduled $25 million quarterly payment on the Term Loan Facility during the quarter ended March 31, 2016. Borrowings under the Credit Facilities bear interest, at our election, at either a LIBOR rate or an alternate base rate (ABR) (equal to the greatest of (i) the administrative agent’s prime rate, (ii) the one-month LIBOR rate plus 1.00% and (iii) the federal funds effective rate plus 0.50%), in each case plus an applicable margin. This applicable margin is based, while our total leverage ratio exceeds 3.00:1.00, on our borrowing base utilization and will vary from (a) in the case of LIBOR loans, 2.50% to 3.50% and (b) in the case of ABR loans, 1.50% to 2.50%. The unused portion of the Revolving Credit Facility, as it may be limited by the borrowing base, is subject to a commitment fee equal to 0.50% per annum. We also pay customary fees and expenses under the Credit Facilities. Interest on ABR loans is payable quarterly in arrears. Interest on LIBOR loans is payable at the end of each LIBOR period, but not less than quarterly. Our financial performance covenants through December 31, 2016 comprise an obligation to achieve (i) a cumulative minimum EBITDAX during 2016 of $55 million through the first quarter, $130 million through the second quarter, $190 million through the third quarter and $250 million through the fourth quarter and (ii) a trailing twelve-month minimum interest coverage ratio of 2.00:1.00 as of the end of the first quarter of 2016, 1.50:1.00 as of the end of the second quarter, 1.25:1.00 as of the end of the third quarter, 0.70:1.00 as of the end of the fourth quarter and 2.00:1.00 thereafter as of each quarter end. Starting with the end of the first quarter of 2017, we will be subject to a trailing twelve-month maximum first lien senior secured leverage ratio of 2.25:1.00. Oil prices would need to increase significantly in order for us to comply with our covenants at the end of the first quarter in 2017. If commodity prices do not appreciate sufficiently, we intend to discuss further amendments with our lenders later this year that would permit us to comply. We can give no assurances that our lenders would amend our covenants. If we were to breach any of our covenants, our lenders would be permitted to accelerate the principal amount due under the Credit Facilities and foreclose on the assets securing them. If payment were accelerated under our Credit Facilities, it would result in a default under our outstanding notes and permit acceleration and foreclosure on the assets securing the secured notes. Except as otherwise agreed with our lenders for specific transactions, our Credit Facilities require us to apply 100% of the proceeds from certain asset monetizations to repay loans outstanding under the Credit Facilities, except that we will be permitted to use up to 40% of proceeds from non-borrowing base asset sales to repurchase our notes to the extent available at a significant minimum discount to par, as specified in the facilities. Subject to compliance with our indentures, we may incur additional indebtedness to repurchase our notes in compliance with the Credit Facilities to the extent available at a significant minimum discount to par, as specified in the facilities, as follows: (i) up to $1 billion, which may be secured by liens that are junior to the liens securing our Credit Facilities, provided that at least 60% of the proceeds from the new debt is used first to repay loans outstanding under the Credit Facilities, and (ii) up to $200 million, which may be secured by first-priority liens on our non-borrowing base properties. The Credit Facilities also permit us to incur up to an additional $50 million of non-Credit Facility indebtedness, which, subject to compliance with our indentures, may be secured; and the proceeds of which must be applied to repay loans outstanding under the Credit Facilities. All of the foregoing prepayments will be applied first to our Term Loan Facility and second to our Revolving Credit Facility after the Term Loan Facility has been fully repaid (with a corresponding reduction to the lenders’ Revolving Credit Facility commitments). We must apply cash on hand in excess of $150 million to repay amounts outstanding under our Revolving Credit Facility. Further, we are restricted from (i) paying dividends or making other distributions to common stockholders and (ii) making capital investments exceeding $100 million during 2016. Our borrowing base is redetermined each May 1 and November 1, commencing May 1, 2016. The borrowing base will be based upon a number of factors, including commodity prices and reserves levels. Increases in our borrowing base requires approval of at least 80% of our revolving lenders, as measured by exposure, while decreases require a two-thirds approval. We and the lenders (requiring a request from the lenders holding two-thirds of the revolving commitments and outstanding loans) each may request a special redetermination once in any period between three consecutive scheduled redeterminations. We will be permitted to have collateral released when both (i) our credit ratings are at least Baa3 from Moody’s and BBB- from S&P, in each case with a stable or better outlook, and (ii) certain permitted liens securing other debt are released. All obligations under the Credit Facilities are guaranteed jointly and severally by all of our material wholly-owned material subsidiaries. The assets and liabilities of subsidiaries not guaranteeing the debt are de minimis. Substantially all of the restrictions imposed by the February 2016 amendment to the Credit Facilities, other than the requirement for semiannual borrowing base redeterminations, may terminate in the future if we are able to comply with the financial covenants as they existed prior to giving effect to the amendment. At March 31, 2016, we were in compliance with the financial and other covenants under our Credit Facilities. Senior Notes In October 2014, we issued $5.00 billion in aggregate principal amount of our senior unsecured notes, including $1.00 billion of 5% senior unsecured notes due January 15, 2020 (the 2020 notes), $1.75 billion of 5 1/2% senior unsecured notes due September 15, 2021 (the 2021 notes) and $2.25 billion of 6% senior unsecured notes due November 15, 2024 (the 2024 notes and together with the 2020 notes and the 2021 notes, the unsecured notes). The unsecured notes were issued at par and are fully and unconditionally guaranteed on a senior unsecured basis by all of our material subsidiaries. We used the net proceeds from the issuance of the unsecured notes to make a $4.95 billion cash distribution to Occidental in October 2014. In December 2015, we exchanged $534 million, $921 million and $1,358 million in aggregate principal amount of the 2020 notes, the 2021 notes, and the 2024 notes, respectively, for $2.25 billion in aggregate principal amount of newly issued 8% senior secured second lien notes due December 15, 2022 (the 2022 notes). We recorded a deferred gain of approximately $560 million on the debt exchange, which will be amortized using the effective interest rate method over the term of the 2022 notes. Additionally, we incurred approximately $28 million in third-party costs which were fully expensed in 2015. The newly-issued second lien notes are secured on a second-priority basis, subject to the terms of an intercreditor agreement and collateral trust agreement by a lien on the same collateral used to secure our obligations under our Credit Facilities. During the three months ended March 31, 2016, prior to our February 2016 amendment, we repurchased approximately $102 million in aggregate principal amount of the senior unsecured notes for $13 million in cash. We will pay interest semiannually in cash in arrears on January 15 and July 15 for the 2020 notes, on March 15 and September 15 for the 2021 notes and on May 15 and November 15 for the 2024 notes. We will pay interest on the 2022 notes semiannually in cash in arrears on June 15 and December 15, beginning on June 15, 2016. The indentures governing the senior unsecured notes and the second lien secured notes each include covenants that, among other things, limit our and our restricted subsidiaries’ ability to incur debt secured by liens. The indentures also restrict our ability to merge or consolidate with, or transfer all or substantially all of our assets to, another entity. These covenants are subject to a number of important qualifications and limitations that are set forth in the indenture. The covenants are not, however, directly linked to measures of our financial performance. In addition, if we experience a “change of control triggering event” (as defined in the indentures) with respect to a series of notes, we will be required, unless we have exercised our right to redeem the notes of such series, to offer to purchase the notes of such series at a purchase price equal to 101% of their principal amount, plus accrued and unpaid interest. The indenture governing our second-lien secured notes also restricts our ability to sell certain assets and to release collateral from liens securing the second-lien secured notes. We estimate the fair value of fixed-rate debt, which is classified as Level 1, based on prices from known market transactions for our instruments. The estimated fair value of our debt at March 31, 2016 and December 31, 2015, including the fair value of the variable rate portion, which we believe approximates the carrying value, was approximately $3.0 billion and $3.6 billion, respectively, compared to a carrying value of approximately $6.0 billion and $6.1 billion. A one-eighth percent change in the variable interest rates on the borrowings under our Term Loan Facility and Revolving Credit Facility on March 31, 2016, would result in a $2.1 million change in annual interest expense. As of March 31, 2016 and December 31, 2015, we had letters of credit in the aggregate amount of approximately $61 million and $70 million (including $52 million and $49 million under the Revolving Credit Facility), respectively, which were issued to support ordinary course marketing, regulatory and other matters.

LAWSUITS, CLAIMS, COMMITMENTS A

LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	3 Months Ended
	Mar. 31, 2016
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES
LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES	NOTE 6 LAWSUITS, CLAIMS, COMMITMENTS AND CONTINGENCIES We, or certain of our subsidiaries, are involved, in the normal course of business, in lawsuits, environmental and other claims and other contingencies that seek, among other things, compensation for alleged personal injury, breach of contract, property damage or other losses, punitive damages, civil penalties, or injunctive or declaratory relief. On April 21, 2016, a purported class action was filed against us in the United States District Court for the Southern District of New York on behalf of all beneficial owners of our unsecured notes from November 12, 2015 to the present. The complaint alleges that our December 2015 debt exchange excluded non-qualified institutional holders in violation of the Trust Indenture Act of 1939 and related law and, thereby, impaired their rights to receive principal and interest payments. The purported class action seeks declaratory relief that the debt exchange and the liens securing the new notes are null and void and that the debt exchange resulted in a default. The plaintiff also seeks monetary damages and attorneys’ fees. The Company plans to vigorously defend against the claims made by the plaintiff. We accrue reserves for currently outstanding lawsuits, claims and proceedings when it is probable that a liability has been incurred and the liability can be reasonably estimated. Reserves balances at March 31, 2016 and December 31, 2015 were not material to our balance sheets as of such dates. We also evaluate the amount of reasonably possible losses that we could incur as a result of these matters. We believe that reasonably possible losses that we could incur in excess of reserves accrued on our balance sheet would not be material to our consolidated financial position or results of operations. We, our subsidiaries, or both, have indemnified various parties against specific liabilities those parties might incur in the future in connection with the Spin-off, purchases and other transactions that they have entered into with us. These indemnities include indemnities made to Occidental against certain tax-related liabilities that may be incurred by Occidental relating to the Spin-off and liabilities related to operation of our business while it was still owned by Occidental. As of March 31, 2016, we are not aware of material indemnity claims pending or threatened against the Company.

DERIVATIVES

DERIVATIVES	3 Months Ended
	Mar. 31, 2016
DERIVATIVES
DERIVATIVES	NOTE 7 DERIVATIVES General From time to time, we use a variety of derivative instruments intended to improve the effective realized prices for oil and gas and protect our capital program in case of price deterioration. Derivatives are carried at fair value and on a net basis when a legal right of offset exists with the same counterparty. We apply hedge accounting when transactions meet specified criteria for cash-flow hedge treatment and management elects and documents such treatment. Otherwise, we recognize any fair value gains or losses, over the remaining term of the hedge instrument, in earnings in the current period. For the three months ended March 31, 2016 and 2015, we recognized approximately $81 million and $3 million, respectively, of non-cash derivative losses from marking these contracts to market, which were included in revenues. As of March 31, 2016, we did not have any derivatives designated as hedges. Unless otherwise indicated, we use the term “hedge” to describe derivative instruments that are designed to achieve our hedging program goals, even though they are not necessarily accounted for as cash flow or fair value hedges. As part of our hedging program, we entered into a number of costless collars and swaps that resulted in the following hedge positions as of March 31, 2016: 2016 2017 2018 Q2 Q3 Q4 Q1 - Q4 Q1 - Q4 Calls: Barrels per day Weighted-average price per barrel $ $ $ $ $ Puts: Barrels per day — — Weighted-average price per barrel $ $ $ $ — $ — Swaps: Barrels per day — — — Weighted-average price per barrel $ — $ $ $ — $ — For our first quarter 2016 oil production, on a weighted-average basis, we had hedged 33,800 barrels per day at Brent-based floors of $51.75 per barrel, with a corresponding 35,500 barrels per day at Brent-based ceilings of $66.15 per barrel. For our first quarter 2015 oil production, on a weighted-average basis, we hedged 100,000 barrels per day at Brent-based floors of $50.00 per barrel, with a corresponding 10,000 barrels per day at Brent-based ceilings of $75.00 per barrel. During the first quarter of 2016 and 2015, we generated cash from our hedging program of $56 million and $1 million, respectively. Subsequent to March 31, 2016, we entered into additional hedges for our fourth quarter 2016 crude oil production, bringing our fourth quarter 2016 hedging program to a total of 28,000 barrels per day with a weighted average floor of $49.20 per barrel and offset by 23,000 barrels per day with a ceiling of $53.67 per barrel. We will continue to be strategic and opportunistic in implementing our hedging program as market conditions permit. Our objective is to protect against the cyclical nature of commodity prices to protect our cash flows, margins and capital investment program and improve our ability to comply with our credit facility covenants in case of further price deterioration. Fair Value of Derivatives Our commodity derivatives are measured at fair value using industry-standard models with various inputs, including quoted forward prices, and are all classified as Level 2 in the required fair value hierarchy for the periods presented. The following table presents the fair values (at gross and net) of our outstanding derivatives as of March 31, 2016 and December 31, 2015 (in millions): Type of Contract Balance Sheet Classification March 31, 2016 December 31, 2015 Commodity contracts Other current assets $ $ Total Assets at Fair Value $ $ Commodity contracts Accrued liabilities $ ) $ ) Commodity contracts Other long-term liabilities ) — Total Liabilities at Fair Value $ ) $ )

EARNINGS PER SHARE

EARNINGS PER SHARE	3 Months Ended
	Mar. 31, 2016
EARNINGS PER SHARE
EARNINGS PER SHARE	NOTE 8 EARNINGS PER SHARE We compute earnings per share (EPS) using the two-class method required for participating securities. Undistributed earnings allocated to participating securities are subtracted from net income in determining net income attributable to common stockholders. Restricted stock awards are considered participating securities because holders of such shares have non-forfeitable dividend rights in the event of our declaration of a dividend for common shares. The denominator of basic EPS is the sum of the weighted-average number of common shares outstanding during the periods presented and vested stock awards that have not yet been issued as common stock; however, it excludes outstanding shares related to unvested stock awards. The denominator of diluted EPS is based on the basic shares outstanding, adjusted for the effect of outstanding option awards, to the extent they are dilutive. The effect of the stock options granted in August 2015 and December 2014 was anti-dilutive for the periods presented. For the three months ended March 31, 2016 and 2015, we issued approximately 980,000 shares and 370,000 shares, respectively, of common stock in connection with our employee stock purchase plan. The effect of the employee stock purchase plan was anti-dilutive for both periods. The following table presents the calculation of basic and diluted EPS for the three-month periods ended March 31, 2016 and 2015: Three months ended March 31, 2016 2015 (in millions, except per-share amounts) Basic EPS calculation Net loss $ $ ) Net loss allocated to participating securities — — Net loss available to common stockholders $ $ ) Weighted-average common shares outstanding - basic Basic EPS $ $ ) Diluted EPS calculation Net loss $ $ ) Net loss allocated to participating securities — — Net loss available to common stockholders $ $ ) Weighted-average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — Weighted-average common shares outstanding - diluted Diluted EPS $ $ )

RETIREMENT AND POSTRETIREMENT B

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS	3 Months Ended
	Mar. 31, 2016
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS	NOTE 9 RETIREMENT AND POSTRETIREMENT BENEFIT PLANS The following table sets forth the components of the net periodic benefit costs for our defined benefit pension and postretirement benefit plans: Three months ended March 31, 2016 2015 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ — $ $ $ Interest cost Expected return on plan assets ) — ) — Settlement loss — — — Total $ $ $ $ We contributed $5 million to our defined benefit pension plans during the three months ended March 31, 2016. We did not make any contributions during the three-month period ended March 31, 2015. We expect to satisfy minimum funding requirements with contributions of $3 million to our defined benefit pension plans during the remainder of 2016. The 2016 settlement was associated with employee reductions.

INCOME TAXES

INCOME TAXES	3 Months Ended
	Mar. 31, 2016
INCOME TAXES
INCOME TAXES	NOTE 10 INCOME TAXES As a result of the debt exchange in December 2015, we generated cancellation of debt income of $1.39 billion for tax purposes, which represented the excess of the face value of the surrendered notes over the fair value of the newly issued notes at the time of the exchange. The tax gain exceeded our operating loss for the year. We reported the related $336 million of federal and state taxes in current and other long-term liabilities in the accompanying balance sheet at December 31, 2015. During the first quarter of 2016, we reclassified this amount to deferred taxes to reflect the reduction in the tax basis of our assets resulting from the exclusion of the $1.39 billion in cancellation of debt income from our 2015 taxable income. We also recorded a deferred income tax benefit of approximately $78 million to reflect a change in the valuation allowance on our deferred tax assets. Our effective tax rate was 61% and 41% for the three months ended March 31, 2016 and March 31, 2015, respectively. The higher rate for the first quarter of 2016 reflects the deferred tax benefit for the change in the valuation allowance.

SUBSEQUENT EVENTS

SUBSEQUENT EVENTS	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENTS
SUBSEQUENT EVENTS	NOTE 11 SUBSEQUENT EVENTS Our stockholders approved a reverse stock split at the Company’s annual stockholders’ meeting May 4, 2016. Following this approval, our board of directors authorized a reverse split using a ratio of one share of common stock for every ten shares currently outstanding. Our board set the split to occur on May 31, 2016 with trading on a post-split basis to commence the following day. Share and per share amounts included in this report have not been restated to reflect this stock split because the split will not be effective until after the filing of this report. Pro forma share and per share information as of and for the three months ended March 31, 2016, giving effect to the one-for-ten reverse stock split, is presented below: As of and for the three months ended March 31, 2016 2015 As Reported Pro Forma As Reported Pro Forma Common stock - $0.01 par value. Weighted-average outstanding shares - diluted (in millions) Net loss per common share - diluted $ ) $ ) $ ) $ ) The split will also proportionally decrease the number of authorized shares of common stock from 2.0 billion shares to 200 million shares and preferred stock from 200 million to 20 million shares. The compensation committee of our board approved proportionate adjustments to the number of shares outstanding and available for issuance under our stock-based compensation plans and to the exercise price, grant price or purchase price relating to any award under the plans, using the same reverse split ratio, pursuant to existing authority granted to the committee under the plans.

THE SPIN-OFF AND SUMMARY OF S18

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Policies)	3 Months Ended
	Mar. 31, 2016
THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Basis of Presentation	Basis of Presentation The assets and liabilities in the consolidated condensed financial statements are presented on a historical cost basis. We have eliminated all of our significant intercompany transactions and accounts. In the opinion of our management, the accompanying financial statements contain all adjustments (consisting of normal recurring adjustments) necessary to fairly present our financial position as of March 31, 2016, and the statements of operations, comprehensive income, and cash flows for the three months ended March 31, 2016 and 2015, as applicable. The loss and cash flows for the periods ended March 31, 2016 and 2015 are not necessarily indicative of the loss or cash flows you should expect for the full year. Certain prior year amounts have been reclassified to conform to the 2016 presentation. We have prepared this report pursuant to the rules and regulations of the United States Securities and Exchange Commission applicable to interim financial information, which permit omission of certain disclosures to the extent they have not changed materially since the latest annual financial statements. We believe our disclosures are adequate to make the information not misleading. This Form 10-Q should be read in conjunction with the consolidated and combined financial statements and the notes thereto in our Annual Report on Form 10-K for the year ended December 31, 2015.

INVENTORIES (Tables)

INVENTORIES (Tables)	3 Months Ended
	Mar. 31, 2016
INVENTORIES
Schedule of Inventories	March 31, 2016 December 31, 2015 (in millions) Materials and supplies $ $ Finished goods Total $ $

DEBT (Tables)

DEBT (Tables)	3 Months Ended
	Mar. 31, 2016
DEBT
Schedule of Long-term Debt	March 31, 2016 December 31, 2015 (in millions) Secured First Lien Bank Debt Revolving Credit Facility $ $ Term Loan Facility Senior Secured Second Lien Notes 8% Notes Due 2022 Senior Unsecured Notes 5% Notes Due 2020 5 1 / 2 % Notes Due 2021 6% Notes Due 2024 Total Debt - Principal Amount Less Current Maturities of Long-Term Debt Long-Term Debt - Principal Amount $ $

DERIVATIVES (Tables)

DERIVATIVES (Tables)	3 Months Ended
	Mar. 31, 2016
DERIVATIVES
Schedule of current hedge positions including those entered into after year end	2016 2017 2018 Q2 Q3 Q4 Q1 - Q4 Q1 - Q4 Calls: Barrels per day Weighted-average price per barrel $ $ $ $ $ Puts: Barrels per day — — Weighted-average price per barrel $ $ $ $ — $ — Swaps: Barrels per day — — — Weighted-average price per barrel $ — $ $ $ — $ —
Gross and net fair values of outstanding derivatives (in millions)	The following table presents the fair values (at gross and net) of our outstanding derivatives as of March 31, 2016 and December 31, 2015 (in millions): Type of Contract Balance Sheet Classification March 31, 2016 December 31, 2015 Commodity contracts Other current assets $ $ Total Assets at Fair Value $ $ Commodity contracts Accrued liabilities $ ) $ ) Commodity contracts Other long-term liabilities ) — Total Liabilities at Fair Value $ ) $ )

EARNINGS PER SHARE (Tables)

EARNINGS PER SHARE (Tables)	3 Months Ended
	Mar. 31, 2016
EARNINGS PER SHARE
Calculation of basic and diluted EPS	Three months ended March 31, 2016 2015 (in millions, except per-share amounts) Basic EPS calculation Net loss $ $ ) Net loss allocated to participating securities — — Net loss available to common stockholders $ $ ) Weighted-average common shares outstanding - basic Basic EPS $ $ ) Diluted EPS calculation Net loss $ $ ) Net loss allocated to participating securities — — Net loss available to common stockholders $ $ ) Weighted-average common shares outstanding - basic Dilutive effect of potentially dilutive securities — — Weighted-average common shares outstanding - diluted Diluted EPS $ $ )

RETIREMENT AND POSTRETIREMENT23

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Tables)	3 Months Ended
	Mar. 31, 2016
RETIREMENT AND POSTRETIREMENT BENEFIT PLANS
Components of the net periodic benefit cost	Three months ended March 31, 2016 2015 Pension Benefit Postretirement Benefit Pension Benefit Postretirement Benefit (in millions) Service cost $ — $ $ $ Interest cost Expected return on plan assets ) — ) — Settlement loss — — — Total $ $ $ $

SUBSEQUENT EVENTS (Tables)

SUBSEQUENT EVENTS (Tables)	3 Months Ended
	Mar. 31, 2016
SUBSEQUENT EVENTS
Pro forma share and per share information, stock-split effect	As of and for the three months ended March 31, 2016 2015 As Reported Pro Forma As Reported Pro Forma Common stock - $0.01 par value. Weighted-average outstanding shares - diluted (in millions) Net loss per common share - diluted $ ) $ ) $ ) $ )

THE SPIN-OFF AND SUMMARY OF S25

THE SPIN-OFF AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Details)	Nov. 30, 2014
Spinoff - CRC | Occidental Petroleum And Subsidiaries
Separation and Spin Off Transactions
Percentage of outstanding shares of common stock initially retained by Occidental	18.50%

OTHER INFORMATION (Details)

OTHER INFORMATION (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Interest Paid	$ 48	$ 54
Other current assets
Amount due from joint interest partners, net of allowance for doubtful accounts included in other current assets	42		$ 42
Deferred tax assets, net	47		59
Derivatives from commodities contracts	79		87
Other long-term liabilities
Asset retirement obligation, included in other long-term liabilities	$ 344		$ 343

INVENTORIES (Details)

INVENTORIES (Details) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
INVENTORIES
Materials and supplies	$ 59	$ 55
Finished goods	2	3
Total	$ 61	$ 58

DEBT (Details)

DEBT (Details) $ in Millions	Mar. 31, 2017item	Dec. 31, 2015USD ($)	Oct. 31, 2014USD ($)	Mar. 31, 2016USD ($)item	Jun. 30, 2016USD ($)item	Sep. 30, 2016USD ($)item	Dec. 31, 2016USD ($)item	Mar. 31, 2017item	May. 31, 2016USD ($)	Feb. 29, 2016USD ($)
Debt
Total Debt - Principal Amount		$ 6,143		$ 5,972
Less Current Maturities of Long-Term Debt		(100)		(100)
Long-Term Debt - Principal Amount		6,043		5,872
Deferred gains		560		543
Deferred issuance costs		(69)		(73)
Deferred gain and issuance costs, net		491		$ 470
December 2015 debt exchange
Debt
Deferred gains		560
Debt issuance costs		$ 28
Senior Unsecured Notes
Debt
Aggregate principal amount			$ 5,000
Net Proceeds from private placement			4,950
Cash distribution to Occidental in October 2014			4,950
Senior Secured Second Lien Notes | Senior Unsecured Notes
Debt
Semi annual interest payment		semiannually
Percentage of principal amount at which senior notes can be redeemed				101.00%
Senior Secured Second Lien Notes | 8.00% Notes Due 2022
Debt
Total Debt - Principal Amount		$ 2,250		$ 2,250
Debt instrument interest rate stated percentage		8.00%		8.00%
Senior Secured Second Lien Notes | 8.00% Notes Due 2022 | December 2015 debt exchange
Debt
Total Debt - Principal Amount		$ 2,250
Debt instrument interest rate stated percentage		8.00%
Senior Unsecured Notes
Debt
Aggregate principal amount of debt instruments repurchased				$ 102
Debt instrument repurchase amount				13
Senior Unsecured Notes | 5.00% Notes Due 2020
Debt
Total Debt - Principal Amount		$ 433	$ 1,000	$ 392
Debt instrument interest rate stated percentage		5.00%	5.00%	5.00%
Senior Unsecured Notes | 5.00% Notes Due 2020 | December 2015 debt exchange
Debt
Original debt exchanged		$ 534
Senior Unsecured Notes | 5.50% Notes Due 2021
Debt
Total Debt - Principal Amount		$ 829	$ 1,750	$ 805
Debt instrument interest rate stated percentage		5.50%	5.50%	5.50%
Senior Unsecured Notes | 5.50% Notes Due 2021 | December 2015 debt exchange
Debt
Original debt exchanged		$ 921
Senior Unsecured Notes | 6.00% Notes Due 2024
Debt
Total Debt - Principal Amount		$ 892	$ 2,250	$ 855
Debt instrument interest rate stated percentage		6.00%	6.00%	6.00%
Senior Unsecured Notes | 6.00% Notes Due 2024 | December 2015 debt exchange
Debt
Original debt exchanged		$ 1,358
Credit Facilities
Debt
Maximum borrowing capacity									$ 2,300	$ 2,300
Credit agreement leverage ratio				3
Credit Facilities | LIBOR loans
Debt
Variable rate basis				LIBOR
Credit Facilities | Alternate Base Rate loans
Debt
Variable rate basis				alternate base rate
Variable rate basis				one-month LIBOR
Interest rate added to variable rate basis(as a percent)				1.00%
Credit Facilities | Prime Rate
Debt
Variable rate basis				agent's prime rate
Credit Facilities | Federal fund rate
Debt
Variable rate basis				federal funds effective rate
Interest rate added to variable rate basis(as a percent)				0.50%
Credit Facilities | February 2016 credit facilities amendment
Financial performance covenants
Cumulative minimum EBITDAX				$ 55
Trailing twelve-month minimum interest coverage ratio | item				2
Credit Facilities | February 2016 credit facilities amendment | Scenario, Forecast
Financial performance covenants
Cumulative minimum EBITDAX					$ 130	$ 190	$ 250
Trailing twelve-month minimum interest coverage ratio | item					1.50	1.25	0.70
Trailing after twelve-month minimum interest coverage ratio | item								2
Trailing twelve-month maximum first lien senior secured leverage ratio | item	2.25
Percent of proceeds from asset monetization which must be used to repay loans outstanding under the Credit Facilities							100.00%
Maximum percent of proceeds from non-borrowing base asset sales that may be used to repurchase notes							40.00%
Minimum percent of the proceeds from new debt which must be used to repay the Term Loan							60.00%
Maximum new borrowing which can be secured by first-priority liens on non-borrowing base properties							$ 200
Maximum additional non-Credit Facility indebtedness							50
Amount of cash on hand above which amounts owed under the Revolving Credit Facility must be repaid							150
Maximum capital investment restriction							100
Maximum additional debt secured by liens on borrowing base that are junior to the Credit Facility liens which may be acquired to repurchase notes							$ 1,000
Credit Facilities | Minimum
Debt
Approval percentage measured by total exposure of lenders for approval of decreases in borrowing base				67.00%
Approval percentage measured by total exposure of lenders for approval of increases in borrowing base				80.00%
Credit Facilities | Minimum | LIBOR loans
Debt
Interest rate added to variable rate basis(as a percent)				2.50%
Credit Facilities | Minimum | Alternate Base Rate loans
Debt
Interest rate added to variable rate basis(as a percent)				1.50%
Credit Facilities | Maximum | LIBOR loans
Debt
Interest rate added to variable rate basis(as a percent)				3.50%
Credit Facilities | Maximum | Alternate Base Rate loans
Debt
Interest rate added to variable rate basis(as a percent)				2.50%
Term loan facility
Debt
Maximum borrowing capacity				$ 975
Term loan facility | Secured First Lien Bank Debt
Debt
Total Debt - Principal Amount		1,000		975
Quarterly installment payment of Term Loan				25
Revolving credit facility
Debt
Maximum borrowing capacity				$ 1,600
Commitment fees on unused portion of the Revolving Credit Facility				0.50%
Revolving credit facility | Secured First Lien Bank Debt
Debt
Total Debt - Principal Amount		$ 739		$ 695
Revolving credit facility | Letter of Credit
Debt
Maximum borrowing capacity				$ 400

DEBT (Details 2)

DEBT (Details 2) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Dec. 31, 2015
Other Fixed-Rate and Variable-Rate Debt Disclosures
Estimated fair value of long-term debt	$ 3,000	$ 3,600
Debt carrying value	6,000	6,100
Letters of credit issued	61	70
Revolving credit facility | Letter of Credit
Other Fixed-Rate and Variable-Rate Debt Disclosures
Letters of credit issued	$ 52	$ 49
Pro Forma
Other Variable-Rate Debt Disclosures
Percentage of change in the variable interest rates	0.125%
Effect of 1/8 percent change in interest rates	$ 2.1

DERIVATIVES (Details)

DERIVATIVES (Details) $ in Millions	1 Months Ended	3 Months Ended
	May. 04, 2016$ / bblbbl	Mar. 31, 2016USD ($)$ / bblbbl	Mar. 31, 2015USD ($)$ / bblbbl
Derivatives
Non-cash derivative losses recognized in revenues | $		$ (81)	$ (3)
Cash generated from hedging program | $		$ 56	$ 1
Calls | April through June 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		35,500
Weighted-Average Price (in dollars per barrel) | $ / bbl		66.15
Calls | July Through September 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		4,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		71.13
Calls | October Through December 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		4,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		71.13
Calls | January through December 2017 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		30,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		55.68
Calls | January Through December 2018 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		23,300
Weighted-Average Price (in dollars per barrel) | $ / bbl		57.99
Puts | April through June 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		55,500
Weighted-Average Price (in dollars per barrel) | $ / bbl		50.14
Puts | July Through September 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		28,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		50.65
Puts | October Through December 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		3,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		50
Swaps | July Through September 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		1,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		61.25
Swaps | October Through December 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		6,000
Weighted-Average Price (in dollars per barrel) | $ / bbl		46.27
Crude oil brent based hedges at weighted average floor price member | January through March 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		33,800
Weighted-Average Price (in dollars per barrel) | $ / bbl		51.75
Crude oil brent based hedges at weighted average floor price member | October Through December 2016 crude oil production member | Subsequent event
Derivatives
Average crude oil production per day (in barrels per day) | bbl	28,000
Weighted-Average Price (in dollars per barrel) | $ / bbl	49.20
Crude oil brent based hedges at weighted average floor price member | January through March 2015 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl			100,000
Weighted-Average Price (in dollars per barrel) | $ / bbl			50
Crude oil brent based hedges at weighted average ceiling price member | January through March 2016 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl		35,500
Weighted-Average Price (in dollars per barrel) | $ / bbl		66.15
Crude oil brent based hedges at weighted average ceiling price member | October Through December 2016 crude oil production member | Subsequent event
Derivatives
Average crude oil production per day (in barrels per day) | bbl	23,000
Weighted-Average Price (in dollars per barrel) | $ / bbl	53.67
Crude oil brent based hedges at weighted average ceiling price member | January through March 2015 crude oil production member
Derivatives
Average crude oil production per day (in barrels per day) | bbl			10,000
Weighted-Average Price (in dollars per barrel) | $ / bbl			75

DERIVATIVES (Details 2)

DERIVATIVES (Details 2) - USD ($) $ in Millions	Mar. 31, 2016	Dec. 31, 2015
Gross and net fair values of outstanding derivatives (in millions)
Total Assets at Fair Value	$ 79	$ 87
Total Liabilities at Fair Value	(74)	(1)
Commodity Contracts | Other current assets
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative asset, gross	79	87
Commodity Contracts | Accrued liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	(7)	$ (1)
Commodity Contracts | Other long-term liabilities
Gross and net fair values of outstanding derivatives (in millions)
Commodity contract derivative liability, gross	$ (67)

EARNINGS PER SHARE (Details)

EARNINGS PER SHARE (Details) - USD ($) $ / shares in Units, $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
EARNINGS PER SHARE
Common stock issued in connection with employee stock purchase plan	980,000	370,000
Basic EPS
Net loss	$ (50)	$ (100)
Net loss allocated to participating securities	0	0
Net loss available to common stockholders	$ (50)	$ (100)
Weighed average common shares outstanding - basic	385,300,000	382,100,000
Basic EPS (in dollars per share)	$ (0.13)	$ (0.26)
Diluted EPS
Net loss	$ (50)	$ (100)
Net loss allocated to participating securities	0	0
Net loss available to common stockholders	$ (50)	$ (100)
Weighed average common shares outstanding - basic	385,300,000	382,100,000
Weighted average common shares outstanding - diluted	385,300,000	382,100,000
Diluted EPS (in dollars per share)	$ (0.13)	$ (0.26)

RETIREMENT AND POSTRETIREMENT33

RETIREMENT AND POSTRETIREMENT BENEFIT PLANS (Details) - USD ($) $ in Millions	3 Months Ended
	Mar. 31, 2016	Mar. 31, 2015
Net periodic benefit costs:
Employer contributions	$ 5	$ 0
Expected contribution to defined benefit pension plans during the reminder of 2016	3
Pension Benefit
Net periodic benefit costs:
Service cost		1
Interest cost	1	1
Expected return on plan assets	(1)	(1)
Settlement loss	3
Total	3	1
Postretirement Benefit
Net periodic benefit costs:
Service cost	1	1
Interest cost	1	1
Total	$ 2	$ 2

INCOME TAXES (Details)

INCOME TAXES (Details) - USD ($) $ in Millions	1 Months Ended	3 Months Ended		12 Months Ended
	Dec. 31, 2015	Mar. 31, 2016	Mar. 31, 2015	Dec. 31, 2015
Cancellation of debt income, for tax purposes	$ 1,390
Deferred tax liabilities		$ 1,390
Deferred income tax benefit due to change in valuation allowance		$ 78
Effective tax rate (as a percent)		61.00%	41.00%
Current and other long-term liabilities
Federal and state taxes reported in current and other long-term liabilities				$ 336

SUBSEQUENT EVENTS (Details)

SUBSEQUENT EVENTS (Details) shares in Millions	May. 04, 2016shares	Mar. 31, 2016$ / sharesshares	Mar. 31, 2015$ / sharesshares	Dec. 31, 2015$ / sharesshares
Pro forma share and per share reverse stock split
Common stock - $0.01 par value. Weighted-average outstanding shares - diluted		385.3	382.1
Diluted (in dollars per share) | $ / shares		$ (0.13)	$ (0.26)
Common stock, par value (in dollars per share) | $ / shares		$ 0.01		$ 0.01
Common stock, authorized shares		2,000		2,000
Preferred stock, authorized shares		200		200
As Reported
Pro forma share and per share reverse stock split
Common stock - $0.01 par value. Weighted-average outstanding shares - diluted		385.3	382.1
Diluted (in dollars per share) | $ / shares		$ (0.13)	$ (0.26)
Pro Forma
Pro forma share and per share reverse stock split
Common stock - $0.01 par value. Weighted-average outstanding shares - diluted		38.5	38.2
Diluted (in dollars per share) | $ / shares		$ (1.30)	$ (2.62)
Subsequent event
Pro forma share and per share reverse stock split
reverse stock split ratio	10
Common stock, authorized shares	200
Preferred stock, authorized shares	20